More British banks are poised to tap shareholders for billions of pounds in emergency capital, Mervyn King, the Governor of the Bank of England, revealed yesterday, The Times reports.
As Royal Bank of Scotland put the finishing touches to a £12 billion rights issue, expected to be announced today, Mr King hinted strongly that RBS would be the first of many. “I’m pleased that banks have recognised the need to raise capital. I expect we will see more of it in the coming weeks,” he said as he announced details of the Bank’s plan to loosen the paralysed money markets with a £50 billion injection of fresh liquidity. Bank shares dived as investors speculated on likely contenders to follow RBS’s lead, with Barclays and HBOS seen as favourites among the biggest banks. Allia...
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